Lloyds Banking Group will replace Antonio Horta-Osorio with either the
chairman Sir Win Bischoff or one of two senior directors if the stricken
chief executive does not return from his leave of absence.

Sir Win Bischoff or the senior independent director Glen Moreno could be in line to replace Antonio Horta-Osorio.Photo: Reuters

The Sunday Telegraph understands that the board’s contingency plan centres on parachuting the chairman or non-executives Glen Moreno or David Roberts in to the lead executive role.

Despite the bank’s reassurances that its chief executive will return by the end of the year, the board is known to be poised to make a series of major decisions within two to three weeks after an update on Mr Horta-Osorio’s health.

It is understood that Sir Win, if chosen by the board, would become executive chairman, while Mr Moreno or Mr Roberts would be moved in to become chief executive. Although it remains unclear which man would be selected, Sir Win is thought to be uncomfortable with the position of executive chairman, and so it appears more likely he would remain non-executive, with Mr Moreno or Mr Roberts taking on the management reins.

Neither appointment would be long-term, but would be necessary to provide some continuity and experience. The interim chief executive, Tim Tookey, is due to leave the bank in February, and regulatory and government approval for an outsider could take months.

Sir Win ran Schroders for 11 years until 1995, and went on to become interim chief executive and then chairman of Citigroup. Mr Moreno previously ran Fidelity International and has been acting chairman of UK Financial Investments; while Mr Roberts was chief executive of Barclays’ personal financial services and business banking arms.

The Sunday Telegraph can also reveal that, prior to Mr Horta-Osorio’s departure from the bank last Monday evening, Lloyds had begun working on the early stages of succession planning to replace Sir Win.

Although that planning has now been placed on hold, ahead of the current situation he had privately indicated a desire to step down towards the end of next year.

Mr Horta-Osorio’s absence could also delay the bank’s sale of 632 branches. The board is expected to ask EU regulators to invoke a clause which allows the completion date of November 2013 to be extended in the event of “severe market dislocation”. Lloyds told bidders it was the result of continued turbulence, but it will in part stem from the fact the absent chief executive was the architect behind the sale process being sped up. Lloyds declined to comment.